Boston, MA 08/19/2014 (wallstreetpr) – NF Energy Saving Corp (NASDAQ:NFEC) announced the three months, and six months results ended June 30, 2014.
Highlights
NF Energy’s total revenues increased by 20.6% in six months to $3.34 million (2Q2014: $1.6 million, up by 8.27%) due to rising product revenues, which represents 94% of total revenues, compared to previous year period. The product revenues increased by 39% to $3.17 million due to increase in production of energy-related products (2Q2014: $1.5 million, up by 7.1%).
But, service revenue decreased significantly to $0.178 million during 1H2014 versus $0.472 million in 1H2013 as a result of decreased services related to export casting product processing.
In 1H2014, total revenue though increased, but gross profit decreased comparatively due to higher cost of products. The decreased gross profit and higher operating expenses compressed operating performance significantly to operating loss and consequently a net loss during 1H2014.
Despite the net loss, NF Energy Saving Corp (NASDAQ:NFEC) generated cash of ~$0.180 million from its operation and used $0.027 million in capex, and received net proceeds of $4.56 million from short-term borrowings that resulted with positive net cash flow. As of June 30, 2014, NF Energy has a cash and cash equivalents of $1.2 million.
Outlook
NF Energy Saving Corp (NASDAQ:NFEC)’ Chairman Mr.Gang Li said that the Company now focuses on valve and flow control equipments and equipment for the protection of environment and dust removal. Therefore, the Company signed contracts with a total amount of CNY120 million (~$19.35 million) during the first half of 2014.
The contracts include valve flow control equipments of CNY100 million (~$16 million) and the environmental protect contracts of CNY20 million ($3.25 million). The Company believes that the two segments will enhance the revenue growth in the forthcoming quarters.
In addition, NF Energy Saving Corp (NASDAQ:NFEC) successfully completed the prototype testing for the equipment for pollution-free processing and trash penetrating fluid and opened a new manufacturing facility in June.
So, the Company expects new growth point from the testing and anticipates improvement in production capacity in the installed cleaning spray pressure and the production line through new facility going forward.
